Sunshine group profits up by 32.5-pct to Rs540 mln in 1Q

(PRESS RELEASE) - Sri Lankan conglomerate Sunshine Holdings reported impressive growth in top and bottom line performances during the first quarter of the current financial year (1QFY18). Consolidated group revenue during the quarter increased by 12.5% Year-on-Year (YoY) to Rs. 5.2 billion, bolstered by strong performances in Agri and Consumer sectors, and despite a slight reduction in growth within the Healthcare sector. The group’s Agribusiness emerged as the largest contributor to Sunshine’s top-line performance, accounting for 38% of total revenue, where Healthcare contributed 37% and Consumer 22% of the total revenue. Profit after tax (PAT) for the period in review rose by 32.5% YoY, on the back of sales growth and operating margin improvement, with strong positive results also being carried through to the Group’s Profit After Tax & Minority Interest (PATMI) which rose by 8.7% YoY to Rs. 224 million. For 1QFY18, PAT amounted to Rs. 540 million up 32.5% YoY, on the back of sales growth and operating margin improvement in 1QFY18 (10.4%) compared to 1QFY17 (8.8%). Profit After Tax & Minority Interest (PATMI) grew 8.7% YoY to Rs 224m with prominent group Sunshine Holdings subsidiary, Watawala Plantation PLC, making the largest contribution to PATMI, accounting for 42% of the total. “Overall, it has been another highly dynamic quarter for Sunshine Holdings, during which we were able to achieve substantial gains with regard to turnover and profitability,” Sunshine Holdings Group Managing Director, Vish Govindsamy stated. “Our proactive strategy of focusing on improving quality and internal efficiency continues to yield strong results for the group, as evidenced by the resurgent performance of our agribusiness.” “While our healthcare sector continues to grapple with significant challenges arising out of the implementation of the price controls on pharmaceuticals and recently on medical devices, the group continues to perform extremely admirably. We commend our dynamic team of employees, and our network of business partners and valued customers for their role in driving outstanding performance over the last quarter. Moving forward we will continue to work in the same spirit of responsible entrepreneurship that Sunshine Holdings guided our company from strength to strength.” In total, the group’s healthcare segment generated Rs. 1.9 billion in turnover during 1Q18, representing a minor 1.2%YoY contraction. Despite these constraints however, tight cost and efficiency controls resulted in the group’s healthcare segment improving its profitability by 5.8% YoY up to Rs. 85 million over the quarter.